First, let's understand what Corporate Tax is in the UAE. It's a
direct tax charged on a company's taxable income. It’s quite straightforward:
- Businesses pay a 9% tax on their yearly taxable income exceeding AED 375,000.
- Income up to AED 375,000 is tax-free at a 0% rate.
Despite its name, the tax doesn't just apply to companies – it applies to
anyone doing business in the UAE. This includes self-employed individuals and
freelancers, who have their own tax application nuances. We have a
detailed guide on this tax. We recommend checking it out before beginning.
Regardless of your income, or lack thereof, you are required to register for Corporate Tax. Now, let's take a closer look.